Demand Rises As Mortgage Rates Retreat From April High

Pending home sales rose 2.7 percent year over year, and new listings climbed for the second consecutive week during the four weeks ending April 26, as the market moved closer to balanced conditions, according to Redfin.

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Months of supply stood at 4.2, just below the 4-to-5-month range Redfin considers balanced. Median days on market reached 44, up four days year over year, giving buyers more time to make decisions. The sale-to-list price ratio slipped to 98.7 percent, and 25.6 percent of homes sold above list price, down from 26 percent.

The gap between what sellers are asking and what buyers are paying widened: The median asking price was $427,245, up 2 percent year over year, while the median sale price was $396,000, up 2.4 percent, a difference of more than $31,000.

The softening aligns with separate Redfin data showing home prices rose just 1.7 percent year over year in March, the slowest growth rate on record, according to the brokerage. Prices fell in 13 major metros month over month, with the steepest declines in Texas.

Contract cancellations are adding to the picture: 13.4 percent of home-sale agreements that went under contract in March were canceled, according to Redfin. Cancellations were most common in San Antonio, Texas, and Orlando, Florida, and least common in Nassau County, New York; Montgomery County, Pennsylvania; and Milwaukee.

The weekly average 30-year fixed mortgage rate fell to 6.23 percent for the week ending April 23, down from a six-month high of 6.46 percent reached at the start of April, according to Freddie Mac. As of April 29, the daily average stood at 6.45 percent, according to Mortgage News Daily.

At the metro level, Cleveland and Detroit led price gains, each up 11.3 percent year over year. Seattle posted the steepest decline at 3.6 percent. Prices fell in 16 metros overall.

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